Preserve Rural Post Offices May 9, 2012 Current Retail Locations - PowerPoint PPT Presentation

� Our Plan to � Preserve Rural Post Offices May 9, 2012 �

Current Retail Locations � 3

Alternate Access � 4

Retail Mix � 39%

Customer Visits to Post Offices � 2 7 % d r o p - 3 5 0 m i l l i o n f e w e r v i s i t s t o P O s �

Rural Post Offices � CLOSING THE COST GAP Average cost to operate: $114,000 annually � Bottom 4,500 earn an average of $15,000 annually: equivalent to $52 and 4.4 customer window visits per day � Cost to serve is increasing, revenue and visits are decreasing �

Achieving a Retail Balance � Situation � Financial crisis � USPS commitment 88% of rural Post to rural America � Offices losing money � Rural customers’ Rising costs to desire to preserve maintain Post Post Office � Offices �

Achieving a Retail Balance � Solution � Financial crisis � New framework based on 88% of rural Post Offices losing money � four options for rural Customers’ Post Offices � preference for more convenient access �

Four Paths for Rural Retail Access � Maintain the Post Office with reduced Maintain � retail window service hours to match customer need � Provide delivery service using either rural carriers or highway contract Need new photo Deliver � routes � Engage a local establishment within Engage � the community to establish a Village Post Office � Merge � Merge with a nearby Post Office and provide service from that location � 10

Maintaining Rural Post Offices � Lobby and P.O. Box access � Modified window hours � Maintain ZIP Code � Retain community identity �

Rural Customer Survey Results � Key Learnings 46% would prefer closing Post Office for alternate access

Rural Post Offices � Analyzed 17,728 rural Post Offices � 4,561 to remain at 8 hours of window service � Starting review process for approximately 13,000 Post Offices � Upgrading 400 Post Offices from designated closure � Closing more than 100 non-operating Post Offices � Rural Post Offices will remain open unless community has strong alternative preference �

Next Steps � Two-year Process with Phased Approach � END OF MA Y � SEPTEMBER 2012 TO FALL 2014 � PRC filing � Phased implementation � 90 Day � 2012 � 2014 � 2013 � PRC Review � FALL 2014 � SEPTEMBER � Community meetings Completion � with surveys begin �

Rural Post Offices � OUR COMMITMENT TO EMPLOYEES Methodical process, two year transition � Options available for staying with the Postal Service � Incentive to be provided �

Conclusion � • Preserves rural Post Offices � New Path • Allows communities to retain identity Forward and ZIP Code � • Postal Service will engage Community communities � Engagement • Will obtain local input before changes are made � • Saves over half a billion dollars a year � Achieves • Consistent with five-year plan � Savings • Helps return Postal Service to financial stability �